Guest blog post authored by Scholarship America
American cities have less than 3 months to obligate their remaining American Rescue Plan Act (ARPA) funds or they will lose them. ARPA regulations require local governments to return grant funding that remains unobligated beyond the December 2024 end-of-year deadline to the U.S. Department of Treasury, making this deadline one of the most important for cities, towns and villages. With just months left until the December 31, 2024 obligation deadline, local governments must obligate funding now or risk potential clawbacks of these funds.
If your community is still looking for ways to use ARPA dollars before the end of the year, you can consider setting up scholarship programs for your city staff as a benefit. You can also consider setting up scholarship programs for residents of your city with NLC’s partner, Scholarship America.
Cities across the country struggle to recruit and retain their municipal employees while also feeling challenged to implement the employee upskilling needed to meet changing needs and technologies. One way to address these issues is to provide scholarships offering support for their employees, current and future; however, securing funds to do so can be complicated.
Cities may also be interested in establishing scholarship programs for their residents to fill critical workforce needs in their community in key sectors, such as green jobs, healthcare and childcare. ARPA dollars can be used by obligating dollars toward a contract to provide scholarships for enhancing workforce skills under almost all eligible spending groups (e.g. economic & workforce development, public safety, etc.).
Scholarship America has worked with cities to set up such programs. Since 1958, Scholarship America has been the leading administrator of private scholarships in the United States. As a 501(c)(3) and experienced government contractor, Scholarship America advisors can work with your community to design scholarships that align with the workforce and upskilling needs of your community.
If your community would like to learn more and move quickly on this opportunity, email the Scholarship Design Team at scholarshipdesign@scholarshipamerica.org.
Your ARPA Questions Answered
The passage of the American Rescue Plan Act (ARPA) in 2021 provided a lifeline for local governments through its State and Local Fiscal Recovery Funds (SLFRF) program, which awarded every municipality a portion of $65.1 billion in funding.
For more information, visit ARPA Local Relief Frequently Asked Questions or email NLC’s federal advocacy team at advocacy@nlc.org.
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